By Railways Africa Magazine
The 2025 National Budget, themed “Building Resilience for Sustained Economic Transformation”, presented by Honourable Professor Mthuli Ncube, Zimbabwe’s Minister of Finance, Economic Development and Investment Promotion, highlights strategic initiatives to revitalise the nation’s infrastructure, bolster economic growth, and ensure competitiveness in both domestic and international markets.
Logistics and Railway Systems: Cornerstones of Competitiveness
Modern logistical services, including a robust railway system, are pivotal for enhancing domestic, regional, and international trade. Efficient logistics enable local firms to integrate into global value chains and penetrate new markets rapidly, particularly under the African Continental Free Trade Area (AfCFTA). Recognising this, the Zimbabwean Government has allocated ZiG5.4 billion to the Ministry of Transport and Infrastructural Development for infrastructure projects, emphasising the need for private sector participation under the user-pay principle.
The significant decline in railway capacity, however, continues to shift freight to road transportation, inflating costs for industries and increasing road maintenance burdens. To counter this, the Government continues to pursue strategic partnerships and funding options for the National Railways of Zimbabwe (NRZ) recapitalisation programme, which prioritises:
- Rehabilitation and upgrading of rail infrastructure and signalling systems.
- Procurement of equipment and replacement of rolling stock.
- Partnerships with development banks, Public-Private Partnerships (PPPs), and collaborations with neighbouring railway administrations for joint resourcing. Already, arrangements are in place for locomotives to run through Machipanda to Mutare and Francis Town to Bulawayo.
Notably, NRZ has taken proactive steps to modernise operations, including the deployment of drone technology, CCTV systems, and enhanced access control to combat the theft of railway assets. A budget provision of ZiG180 million has been made to support NRZ’s efforts, complemented by additional funds mobilised through NRZ’s resources.
Private Sector’s Role in Infrastructure Development
The Budget underscores the success of the private-sector collaboration, citing the completion of the Beitbridge Border Post Upgrading Project and the execution of the Mbudzi Interchange Construction, among others as examples. The Government continues to invite private sector players to invest in critical transport sub-sectors, including roads, ports of entry, and railways, leveraging innovative funding models to address the capital-intensive demands of infrastructure development.
Mutapa Investment Fund: Leveraging Strategic Investments
The Mutapa Investment Fund, Zimbabwe’s Sovereign Wealth Fund, plays a central role in driving economic growth through strategic sector investments. With a diverse portfolio valued at approximately US$16 billionas of March 2024, the Fund spans sectors such as mineral resources, energy, ICT, transport and logistics, agriculture, financial services, and real estate.
The Fund has demonstrated its commitment to sound corporate governance, transparency, and ethical business practices. This includes governance training for entities like Petrotrade, ZESA, and NRZ. The Fund will continue to adhere to legislative frameworks, ensuring its operations align with Zimbabwe’s economic goals.
